20% Upper Circuit: Ethanol stock reports massive 504% YoY surge in net profits

Synopsis: Gulshan Polyols Limited reports 15.68% QoQ revenue growth and a 504.14% YoY surge in net profit in Q3 FY26 results.

This Small-Cap Ethanol stock, engaged in manufacturing sorbitol, liquid glucose, ethanol, bio-fuels, and precipitated calcium carbonate for diverse industries, hit a 20 percent upper circuit after the company reported December quarterly results with a 504.14 percent YoY increase in net profit.

With a market capitalization of Rs. 1,019.14 crores, the shares of Gulshan Polyols Limited hit a 20 percent upper circuit of Rs. 175.80 per share on Wednesday, up from its previous closing price of Rs. 146.50 per share. Since then, the stock has retreated and is currently trading at Rs. 163.40 per equity share. 

Q3 FY26 Result

Coming into the quarterly results of Gulshan Polyols Limited, the company’s consolidated revenue from operations increased by 2.77 percent YOY, from Rs. 609.76 crore in Q3 FY25 to Rs. 626.65 crore in Q3 FY26, and grew by 15.68 percent QoQ from Rs. 541.71 crore in Q2 FY26.

In Q3 FY26, Gulshan Polyols Limited’s consolidated net profit increased by 504.14 percent YOY, reaching Rs. 40.90 crore compared to Rs. 6.77 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 163.36 percent, from Rs. 15.53 crore.

The basic earnings per share increased by 501.83 percent and stood at Rs. 6.56 as against Rs. 1.09 recorded in the same quarter in the previous year, FY2025. Gulshan Polyols Limited’s revenue has grown at a CAGR of 26.61 percent over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 6.31 percent and 3.92 percent, respectively. Gulshan Polyols Limited has an earnings per share (EPS) of Rs. 12.3, and its debt-to-equity ratio is 0.70x.

Revenue Segment

Gulshan Polyols Limited’s total segment revenue for the period amounts to Rs. 626.65 crore. The Ethanol/Bio-Fuel/Distillery segment is the primary contributor, generating Rs. 456.66 crore, which represents approximately 72.9 percent of total segment revenue. 

The Grain Processing segment recorded revenue of Rs. 146.71 crore, contributing about 23.4 percent to the total. Meanwhile, the Mineral Processing segment added Rs. 23.28 crore, accounting for roughly 3.7 percent of overall segment revenue.

Ethanol and Distillery Capacity

Gulshan Polyols Limited has built a strong ethanol and distillery footprint with a total installed capacity of 810 KLPD. This includes two plants in Madhya Pradesh with capacities of 60 KLPD and 500 KLPD, and a 250 KLPD facility in Assam. The diversified geographic presence strengthens supply reliability and supports India’s ethanol blending program.

Gulshan Polyols Limited was established in 2000 and manufactures grain and mineral-based speciality products, primarily focusing on ethanol and bio-fuel production alongside starch derivatives like sorbitol and liquid glucose. 

The company operates across grain processing, bio-fuel distillery, and mineral processing segments, producing items such as precipitated calcium carbonate for industries including paper, paints, and pharmaceuticals, as well as native starch from rice and corn, country liquor, and agro-based animal feed. 

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